The Hindu
Whilst maintaining the status quo with respect to direct and indirect taxes, Finance Minister Nirmala Sitharaman in her maiden interim budget presentation proposed to withdraw small, non-reconciled and disputed direct tax demands. This implies tax demands of up to ₹25,000 pertaining to the period up to FY 2009-10, and up to ₹10,000 for FY 2011 to 2015 — would be withdrawn. Ms Sitharaman held that that the moves were part of the treasury’s intent to improve ‘ease of living and doing business’.
This turned out to be the major policy announcement on February 1 as Ms. Sitharaman maintained the status quo for direct and indirect taxes, including import duties.
Elaborating the rationale for the withdrawal, she told the House that there existed a “large number of petty, non-verified, non-reconciled or disputed direct demands”. Many of which went as far back as 1962., she said, as they continue to remain on the books, they were “causing anxiety to honest taxpayers and hindering refunds of subsequent years.” The Finance Minister said the move would benefit “about a crore taxpayers”.
